- Supply set to climb 2.5% in 2016, higher than prior forecast
- Market deficit lowered by Alcoa, to 775,000 metric tons
Alcoa Inc., the largest U.S. aluminum producer, increased its forecast for global supply of the metal in 2016 and decreased its market-deficit projection.
Supply of the metal used in everything from beer cans to aircraft is set to climb 2.5 percent in 2016, higher than a 2 percent projection in its previous earnings report, the New York-based company said in a statement Monday. In April, Alcoa said it estimated a market deficit of about 1.1 million metric tons in 2016, which it lowered to a 775,000-ton deficit in the latest earnings report.
The price of aluminum has gained almost 10 percent this year to $1,652 a ton on the London Metal Exchange. Demand growth has outstripped supply and could push prices to $1,800 a ton in the third quarter, Capital Economics said in a July 4 report.
Alcoa left its forecast for global aluminum demand unchanged at 5 percent growth from the previous earnings report.
The company increased its forecast for Chinese aluminum supply to 31.9 million tons, up from a prior 31.7 million-ton projection.